If service level agreement is used as a schedule that makes up the contract, it will be most likely to be a part of...?
Correct Answer: B
If a service level agreement is used as a schedule to a contract, it will generally have the following contents: - Service definitions. If the service information is provided by the specification, SLA should only refer to the specification to avoid any inconsistencies. - Details on how to measure KPIs, who will measure KPIs - Minimum requirements or targets - Remedies if the minimum requirements are not met ... Since SLA often lists out the KPI targets, consequences for not meeting the KPI targets and remedies to situation of poor performance, it is a part of performance management. Reference: LO 2, AC 2.2
Question 37
In which of the following section of a specification, requirements for training to use the equipment will be set out?
Correct Answer: C
Implementation is a substantive requirement which covers the following areas: - Will there be a need to train the staff to use the equipment? - Are there integration requirements with other systems or processes? - How will this work? - What are the timescales? - Are detailed method statements required? Consultation requirements regards to explicitness of compliance with any national or local legal requirements Reference: LO 2, AC 2.1
Question 38
Which of the following is the model form of contract for construction which is recommended by World Bank?
Correct Answer: D
FIDIC is the International Federation of Consulting Engineers (or Federation Internationale des Ingenieurs Conseils in French). FIDIC has produced many publications, including the model form contracts, best practice guidances, research on sustainability, integrity and risk management. FIDIC model form contracts have been developed by this organisation since 1999, now they consist of several different books which are marked by colours. Thus, FIDIC model contracts also have the nickname "Rainbow suite of contracts". Basically, the "Rainbow Suite" include the following books: * Yellow book: Plant and Design-Build Contract (2 editions: 1999 and 2017) * Silver book: EPC/Turnkey Contract (2 editions: 1999 and 2017) * Red book: Construction Contracts (2 editions: 1999 and 2017) * Emerald book: Conditions of Contract for Underground Works (1st Ed 2019) * Blue-Green book: Dredgers Contract (2 editions: 2006 and 2016) * Gold book: Design, Build and Operate Contract Guide * Pink book: Construction Contract Multilateral Development Bank Harmonised Ed (2 editions: 2005 and 2010) This type of model contract is commonly used around the world because its author, International Federation of Consulting Engineers, collaborates closely with development banks such as World Bank, Africa Development Bank, Asia Development Bank, etc. Every construction project that is financed by these institutions must adopt the FIDIC contracts. The Joint Contracts Tribunal, also known as the JCT, produces standard forms of contract for construction, guidance notes and other standard documentation for use in the construction industry in the United Kingdom. From its establishment in 1931, JCT has expanded the number of contributing organisations. ITC (International Trade Centre) produces contracts specifically designed for small companies doing international business, covering the sale of goods, distribution, services and joint ventures. Many small companies are now engaged in international trade, but don't have access to the necessary contract forms to protect themselves. ITC and leading legal experts developed eight generic contract templates that incorporate internationally recognized standards and laws for most small business situations. CIPS has several model forms of contract designed specifically for IT buying and servicing. Reference: LO 3, AC 3.1
Question 39
A retailer prefers to display its best selling products and promotion programme on the building windows. According to rule of contract formation, this act will generally constitute...?
Correct Answer: A
Fisher v Bell [1960] and Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] identified that the courts will generally consider goods advertised in shop windows or those with a price tag attached to constitute an invitation to treat. An invitation to treat is a concept in contract law. It refers to an invitation for a party to make an offer enter into contractual negotiations. Invitations to treat can be anything displayed to a large number of people, as long as there is no defined way to choose who can accept. Items on display in a shop, advertisements, and catalogues are all common examples of invitations to treat. However, there are cases in the US shows that under some circumstances an advertisement can become an offer (see Leftkowitz v Great Minneapolis Surplus Stores [1957]). Reference: - What is an Invitation to Treat in Contract Law? - CIPS study guide page 29 LO 1, AC 1.2
Question 40
Which of the following is always automatically considered as a contract?
Correct Answer: A
- A call off or a term contract is one which exists for a fixed period of time, rather than for a specific purpose - A formal framework agreement does have some legal standing but it is not a contract, primarily because there is no consideration involved, but it is an overarching (or umbrella) agreement under which contracts can be created (this holds true in English law but may not be right in other jurisdiction) - A framework arrangement is a rather loose set-up, without any legal standing. It usually occurs when an organisation has decided for itself to limit the number of suppliers it is willing to work with and, through a purely internal process, sets up an approved list of such suppliers. - A performance management framework including KPIs and targets, the assessment scheme and incentives, disincentives, bonuses and penalties. It is a schedule to a contract and only legally binding if it is referred from contract clauses. Reference: LO 1, AC 1.3
